Monday, 9 November 2020

A TECHNICAL VIEW ON CNX-NIFTY FOR—10.11.2020

 

CNX-NIFTY

 Open—12399.40--High—12474.05—Low—12367.35---Close-12461.05 on 9.11.2020.

Support:12430.50/12328/12294/12283/12246.70/12178/12159/12103.05/12041.15/12025.45/11981.75/11929.60/11841.30/11832.30/11803/11794.25/11775.75/11761/11661/11633/11618.10/11614/11584/11535.45/11507.65/11490.75/11460.35/11447/11373.60/11341.4011305.60/11270/11242.65.                                                                                                                                                           

Resistance: 12818/13419/13640/13779.

 (Bold and underlined figures are most important)

As envisaged in my earlier posts that if it remains above 11447 it may retest its all time high of 12430.50 and eventually it surpassed this mark today. It is exhibiting huge strength for up move to continue and may scale new highs in coming days.

But the concern is that it has not filled the gap it created on 5.11.2020 and if it makes an attempt to fill the gap in next 1-2 days time which is technically possible then it could come down to 11929 which may be kept in mind. However if it does not fill the gap in next 1-2 days then concern for filling this gap may be over for the time being. It has created another gap today also and similarly if it makes an attempt to fill the gap in next 3-4 days time which is technically possible then it could come down to 12280 , but if did not fill the gap in next 3-4 days then concern for filling this gap may be over too for the time being. Therefore chances of it coming down to 11929 cannot be ruled out for the next 2 trading session at least.

Furthermore it has had a vertical rise in the last six days from 11557 point so correction is imminent and can happen any time soon. Please note that now its key points are at 12252.50 & 12076.60(figures can change with upward price movement) as long as it holds these key points on the closing basis the ongoing up move will continue off course with intermittent down correction, but sustained break below 12252.50 on the closing basis can push it into short term correction mode and sustained break below 12076.60 can push it into slightly deeper correction. Moving down it may find support at-12430.50---12280---12252.50---12202.65---12168.45---12025.45---11928.70. The technical setup is strong enough as of now, so even if it corrects it is likely to resume the up move again provided it bounce back above its key points after correction is over and most importantly above its previous major top of 12430.50. Moving up it will face resistance at 12818---13419---13640---13779. The bias is up as of now. I once again repeat that it is very strong on the technical footing as of now but at the same time it is highly vulnerable for correction also, so be watchful and alert in long trade.

In view of the above observation long trade can be tried, if it moves and maintains above 12475 for some time or on the decline at appropriate points or near 12252.50  but not below it. Please note that long position can be tried above 12252.50 in any case for the day. Since it is showing robust strength for the continuation of the up move, therefore short trade should be avoided in general but can be attempted after a reasonable rise or on the price breakdown for taking advantage of possible intraday correction or may be for long correction at times.

NOTE: - If it opens up with huge gap up then wait for it to settle down before initiating long position, but short trade can be attempted on huge gap up if it is near the selling point and vice versa . Since, it is showing volatility so any type of trade should be squared off during the day, if you don’t have reasonable profit margin in the trade. Day squaring off is strongly suggested in any case.

TRADING STRATEGY

1. Buy if it moves and maintain above 12475 for some time with a stop loss of 12420.

Or

Buy on decline at appropriate points or near 12252 with a stop loss of 12200.

2. Sell on the rise near or within the range of 12700---12775 with a stop loss of 12825 It could be a risky trade but worth trying for intraday corrective move.

Or

Sell if it moves and maintains below 12200 for some time with a stop loss of 12270. It could be a risky trade but worth trying.

 

Disclaimer:-The view expressed here are solely of the author and he is not at all responsible in any way for the outcome of the trade you enter based on the above view.

Kindly note that make your cost your stop loss in favorable trade and then trail it as the price move up/down to gain maximum profit and avoid losses. Use support and resistance levels as entry, exit, target and trailing stop loss points. DO NOT TRADE WITHOUT STOP LOSS.

 

Note: Price stated here are of spot market.

 

Contact me for strategic guidance to enter and exit trade.

 

 Thanks 

Narendra Kumar Surana

suranank@gmail.com

Mobile—8240951127/9831313654.

 

 

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